o match the right financing option to the dealership’s needs.
Interest rates and fees can significantly impact the total cost of borrowing. It’s important to ask about the interest rates, annual percentage rates (APR), and any additional fees such as origination fees and closing costs.
Details about the length of the loan, repayment frequency, and any flexibility in the repayment schedule are crucial for financial planning. This helps in aligning the loan terms with the dealership’s cash flow.
Knowing the eligibility requirements upfront can save time and effort. Finance managers should ask about the credit score requirements, financial documentation needed, and any other criteria that the lender has.
Most lenders require a minimum FICO score of around 550 for commercial truck loans. Understanding this requirement helps in assessing whether the dealership or its customers meet the criteria.
A personal guarantee can have significant implications. It’s important to understand whether a personal guarantee is necessary and what it entails before proceeding with a particular lender.
Knowing the steps involved in the loan approval process and the typical timeline from application to funding helps in managing expectations and planning accordingly.
Prepayment penalties can affect the dealership’s strategy for managing its debt. It’s essential to know if there are penalties for paying off the loan early.
Inquiring about ongoing support, such as account management and assistance with future financing needs, ensures a long-term beneficial relationship with the lender.
By asking these key questions, finance managers can make informed decisions and secure the best possible financing arrangements for their dealership. This not only helps in managing the dealership’s finances effectively but also ensures that customers get the best deals.